KOTA KINABALU: 13 March 2026 - In response to a sharp increase in business
licence fees imposed by the Penampang Municipal Council, Kapayan
State Assemblyman Chin Tek Ming has called on the Sabah State
Government to intervene and immediately suspend the implementation.
In
a letter sent today to the Sabah Minister of Local Government and
Housing, Datuk Mohammad Arifin, Chin said many business operators in
the Kapayan constituency had recently lodged complaints with his
service centre. They reported that business licence fees under the
jurisdiction of the Penampang Municipal Council were abruptly
increased beginning in 2026, with some cases seeing hikes of more
than 100%, sparking widespread concern and dissatisfaction within the
business community.
Chin
said such sudden and steep increases have placed significant pressure
on many local businesses, particularly small traders and small and
medium enterprises (SMEs), and have raised concerns about the current
business environment.
He
said that while he understands that local authorities require
sufficient financial resources to maintain infrastructure and improve
public services, any policy adjustment that affects business costs
should be implemented gradually and with full consideration of the
prevailing economic conditions and the financial capacity of business
operators.
“Many
businesses are already facing multiple operational pressures,
including the implementation of the e-invoicing system, rising labour
costs, increasing daily operating expenses and fluctuations in fuel
prices. Under such economic circumstances, a sudden increase in
licence fees will only further burden business operators.”
He
stressed that when introducing any policy that directly affects
finances, the government must carefully consider the realities faced
by the local business community, particularly small traders who form
the backbone of both urban and township economies.
Chin
therefore urged the State Government to immediately suspend the
implementation of the Uniform (Licensing of Premises for Commercial,
Trade, Industrial and Professional Purposes) By-Laws 2022 , in order
to ease the economic burden on local businesses.
He
also suggested that during the review process, the authorities should
actively gather feedback from the business community in order to
formulate a more reasonable and sustainable fee structure.
“In
the meantime, the previous licence fee rates should continue to be
applied so that the relevant authorities can carry out a more
comprehensive review.”
In
addition, he said that for businesses that have already paid under
the new fee structure, the authorities should consider refunding the
excess amount collected or making appropriate adjustments to ensure
that administrative measures comply with principles of fairness and
good governance.
Chin
stressed that a government that truly cares about the people must
ensure that its policies do not impose excessive burdens on honest
business operators who are striving to sustain their livelihoods,
especially in the face of continuing economic challenges.
He
expressed hope that the State Government would give due attention and
serious consideration to the proposals in order to safeguard the
stability of local businesses and the community economy.
-END-
Prepared
by:
Chin
Tek Ming
N.25
Kapayan ADUN
13
March 2026
